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Lesson-4-Fundamentals-of-Product-Development

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15 views

Lesson-4-Fundamentals-of-Product-Development

Uploaded by

Kim Cruz
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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ENTREPRENEURSHIP WEEK 3 ENTREPRENEURSHIP

FUNDAMENTALS OF
PRODUCT
DEVELOPMENT

ENTREPRENEURSHIP WEEK 3 ENTREPRENEURSHIP


It is the process of developing, testing,
and commercializing a product or
service with the ultimate objective of
solving the problem of the primary target
market.
4 Sequential Steps of Product
Development

#1 #2 #3 #4
Developing a Creating a Testing the Validating the
product or service prototype prototype market
description
1. Product or Service description

This describes how a product or


service works and how it benefits the
customers. It serves as the blueprint
of all business operations.
Tips on how to create a sound product
description:
• It should directly address the primary target market in a
personal matter using everyday language.
• It should highlight the features that will cater to the customer’s
needs or address the customer’s problems.
• Realistic superlatives should be used for the product
description.
2. Creating prototype of the Product or
Service
It is a preliminary model or sample of Creating a prototype lessens
a new product or service that is implementation/ commercialization
created to test a product concept or risks and provides the entrepreneur
service process. with a bunch of advantages.
Advantages of Creating a
Prototype
Creating a prototype A prototype helps
Creating a prototype enables Creating a
provides the entrepreneur
the entrepreneur to engage in the entrepreneur
a window to test the prototype elicits
trial-and-error, provide room
performance and
effectively describe
respect from key
for improvements, and refine
specifications of various the product or
the functionality of the stakeholders and
materials and service service to the
product design or service customers.
processes.
process. product team.
3. Testing the Product Prototype

Testing the prototype is a vital This will uncover the final loopholes that

process before an actual product or need to be fixed before commercialization


and will give the entrepreneur a leeway to
service is launched to the market.
examine and scrutinize the prototype and
provide feedback as to what can be
improved before the launch.
Testing Methods applied before validating
prototype
#1 Focus Group Discussion #2 Legality and Ethical Test

Its objective is to identify errors, The entrepreneur must ensure that the
deficiencies, and issues that may impede product or service complies with all relevant
the success of the product. laws and regulations and has a necessary
license or permit to operate a particular
business.
Testing Methods applied before validating
prototype
#3 Safety Test #4 Product costing Test

Product - must be safe to use, safe to be This is the time when the entrepreneur can match
consumed, and safe to be applied. the expected costs versus his or her budget.
Service - the processes to be performed by Modification in the manufacturing process or
the service provider must not be detrimental service blueprint can still be made at this point to
to the safety and health of the customer. align with the cost objective of the entrepreneur.
Testing Methods applied before validating
prototype
#5 Component Test #6 Competitor's Product or Service Test

Any failure from each component of product The entrepreneur must test a similar line of
or service must be redesigned and tested products or the competitor’s product or service
again until it becomes fully operational and itself to compare and get the best practices to be
functional. applied to the new product or service.
4. Validation of Market Acceptability

It is the process of finding out if the intended • Will the primary target market like
primary target market will be buying the the product or service?
product or availing the service. It either
• Will the primary target market buy
validates or disconfirms the perception of the
entrepreneur about the suitability of the
the product or service when it is
chosen primary target. already n the market?
ACTIVITY

PROTOTYPE PROTOTYPE PROTOTYPE


ACCOUNTANCY BUSINESS MANAGEMENT

• Product Name with Business Name


and Members
• Product Description
PRODUCT • Product Objectives
• Benefits
PROPOSAL • Raw Materials
• Equipment
• Location
• Target Market
• Competition

ACCOUNTANCY BUSINESS MANAGEMENT

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